The Purpose of Creating a Flexible Budget Is To

question 37

Multiple Choice

The purpose of creating a flexible budget is to:

• A)Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual sales.
• B)Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual variable costs.
• C)Determine how much of the difference between actual and budgeted profits was due strictly to the difference between budgeted and actual fixed costs.
• D)Determine which department is responsible for the overall budget variance.

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Definitions:

Pattern of Beliefs

A consistent and typical set of convictions or opinions that shape an individual’s or group's worldview and actions.

Automatically Transmitted

Pertains to the process where data or information is sent and received without the need for manual intervention.

Diversity Competency

The ability to understand, respect, and value the differences among individuals, fostering an inclusive work environment.

Strategic Business Advantage

A favorable position a company gains in the market by implementing strategies that differentiate it from competitors.